Stock market

Equity market is divided into two parts:

• Primary market

• Secondary market

• Option market

• Future market

No. Of companies listed in NIFTY

• 30

• 70

• 50

• 100

A market index is very important for its use ___________.

• in portfolio management

• as a barometer for market behavior

• as a benchmark of portfolio performance

• All of above

If a stock fails to meet the retention criteria for equity derivatives trading for three months consecutively, existing unexpired contracts may be permitted to trade till expiry and new strikes may also be introduced in the existing contract months -

• True

• False

The clearing member/trading member is required to disclose to the clearing corporation details of any person(s) acting in concert who together own _____% or more of the open interest of all futures and options contracts on a particular underlying index on the stock exchange.

• 12

• 15

• 17

• 20

What penalty is levied for first instance margin / limit violation ?

• 0.07% per day

• 0.07% per day + Rs.5,000/- per instance

• 0.07% per day + Rs.20,000/

• None of avove

Which of the following factor(s) do not affect the value of an option ?

• The Open Interes

• The Spot Price

• The volatility in underlying instruments

• The strike price

You sold a Put option on a share. The strike price of the put was Rs.245 and you received a premium of Rs.49 from the option buyer. Theoretically, what can be the maximum loss on this position?

• 206

• 196

• 49

• Nill

An Equity based Mutual Fund can sell Index Futures to hedge its position - True or False ?

• True

• False

Futures differs from forwards in the sense that ________.

• settlement of contract takes place in the future

• both parties are bound to give/take delivery

• positions are marked-to-market everyday

• contracts are custom designed